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ANNUAL GENERAL MEETING · ANNUAL GENERAL MEETING 23 NOVEMBER, 2017 Synertec Corporation Limited...
Transcript of ANNUAL GENERAL MEETING · ANNUAL GENERAL MEETING 23 NOVEMBER, 2017 Synertec Corporation Limited...
ANNUAL GENERAL MEETING23 NOVEMBER, 2017
Synertec Corporation Limited
ASX:SOP
DISCLAIMER
The Information in this presentation is not an offer or recommendation to purchase or subscribe for securities in
Synertec Corporation Limited or any of its subsidiaries or to retain or sell any securities. This presentation does not
consider, nor does it intend to consider the potential and/or current individual investment objectives and/or financial ssituation
of investors.
This presentation contains forward looking statements. Such forward-lookingstatements are not guarantees of futureperformance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the Directors and our management.
We cannot and do not give any assurancethat the results, performance or achievements expressed or implied by theforward-lookingstatements contained in this presentation will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements.
We have no intention to update or revise forward-lookingstatements, or to publish prospective financial informationin the future, regardless of whether new information, future events or any other factors affect the information contained in this presentation, except where required by law.
To the maximum extent permitted by law, Synertec Corporation Limited andits subsidiaries, along with each entitiesofficers, employees and advisers excludes all liability (including negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from.
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THE BOARD
Leeanne Bond- Independent Non-executive Chair
Michael Carroll – Managing Director
Freddie Heng – Independent Non-executive Director
Poh Kiat – Independent Non-executive Director
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FINANCIAL PICTURE
Successful acquisition of Synertec Pty Ltd completed on 8 August 2017• Combined cash position at completionof $5.2m1
(After sale consideration and transactions costs paid to that date and proceeds from shares issued undershare offer)
FY17 performance of Synertec Pty Ltd in line with management expectations• Revenue of $14.7m2
• Normalised EBITDA3 of $1.3m
• Net Assets of $6.8m2, including:
– Cash of $3.7m, comprising cash and cash equivalents of $3.0m and earmarked term deposits of $0.7m
– Trade debtors of $2.7m (subsequently received)
– No debt
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Sale of mining and related assets for $3.5m by Synergy Metals Pty Ltd (wholly owned subsidiary), executed on 22 September 2017
1 Subject to review and audit by the Company’s auditors2 Extract from Synertec Pty Ltd’s audited financial statements as at 30 June 20173 The directors believe the presentation of certain non-IFRS financial measures is useful for the users of this document as they reflect the
underlying financial performance of the Company. The non-IFRS financial profit measures are used by the Managing Director to review
operations of the Company and include but are limited to: Normalised EBITDA – Earnings before interest, tax, depreciation, and one off items
such as Transaction Costs. The above non-IFRS financial measure has not been subject to review or audit by the Company’s auditors. This non-
IFRS financial measure reconciles to the profit before income tax as reported in the Statement of Profit and Loss and Other Comprehensive
Income on page 6 of the Synertec Pty Ltd Annual Report as at 30 June 2017.
WHAT DOES SYNERTEC DO?
• Specialist engineering products and solutionsprovider targeting specific markets and niche engineering solutions
We target industries and/or projects that are highly–
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Complex
Risky(i.e. technical, reputational, schedule…)and
Regulated (e.g. compliance requirements)
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STRATEGY – TARGETGEOGRAPHIES
Our primary target Geographies are:
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AustraliaMiddle EastChinaSouth East Asia
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STRATEGY – TARGETINDUSTRIES
• We strategically target the following industries:–
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Oil and Gas
Liquid Natural Gas (LNG)
Infrastructure (i.e. rail, water, etc.)
Defence
Fuel Terminals
Pharmaceutical
Metals Processing and
Food and Dairy
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STRATEGY - PRODUCTS
• We leverage our Products and Engineering Solutionsto penetrate the following markets:
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LNG Custody Transfer System
Gas Pipelines Control Systems
Online Process Analytics/Instrumentation
Automation and Safety Systems (SCADA, PLC,DCS)
Hazardous Area System Designs
Manufacturing Enterprise System (MES)
High Tech Manufacturing Facilities
Engineering Procurement and Construction Management (EPCM)and Lump Sum project delivery
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TRENDS
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SYNERTEC REVENUE BY SECTOR (%)
SECTOR FY13 FY14 FY15 FY16 FY17*
OIL & GAS 67.1 65.7 64.3 73 51
WATER 8.6 10.2 13.1 7.1 18
PHARMACEUTICAL 17.1 5.2 7.6 11.5 25
DEFENCE 0.4 4.4 7.6 5.5 4
TERMINALS 6 13.7 6.6 0.6 1
FOOD & BEV 0.3 0.8 0.7 2.2 0.4
PETROCHEM & OTHER 0.5 0 0.1 0.1 1
* Rounding error
CURRENT/EMERGING INDUSTRY TRENDS
Oil & Gas• Current LNG (greenfield) construction projects coming to an end (both withinAust and overseas) but
potential for new emerging projectsRenewals (brownfield) debottlenecking projects increasingCustody Transfer System demand increasing (local and International) Associated product development underway
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Water••
New and renewals spending increasingBuilding on major long term contract with Melbourne Water
Pharmaceutical• Increased interest in manufacturing by foreign companies to take advantage of Australia’s reputation –
especially China
Defence• Significant projects such as new submarines and warships present opportunity
Terminals• Very limited expenditure over recent years, expectation of increasedexpenditure in the near term presents
opportunities
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SUMMARY
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Regional and industry diversity reduces revenue risk
Infrastructure spending is increasing in all target regions including:
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Belt and Road Initiative (China) offers great opportunity
North Australia Investment Fund (NAIF, $5billion)
Defence spending in Australia
LNG will be in undersupply by 2022 – new capital expenditure
High Tech manufacturing–
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Well capitalized with significant cash
The Board has the skills and diversity to manage growth
It is an exciting time for Synertec Shareholders
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© Synertec 2017